their particular situation, but i have a large state with a number of uninsured. i will make sure that they have it will have to be sorted out at the end of the year, so there will be some difficulties there. at the same time, if the only metric is the number -- right now, that seems to be the case i would expect a lot of activity in a state like mine. not seeing it right now. maybe happening under the radar. the advantage from rural america is not only to get someone sign up for insurance, we get paid on a per head assignment and we get them on a voter roll so that this may be useful information to us in the future. a lot of things happening at once there. but you don't see a lot of it -- you're not reading the articles in the paper, seeing people talk about on the evening news.

>> is there evidence that they are just looking for poor people and say, forget about your income, we will sign you up and worry about it next year? >> i wonder if that wouldn't naturally be involved as a business model. we have identified what success is. 7 million people. we need to get there quickly. in order to say, this is working as we planned, this is where the money is. >> you are doing much more california, october 1. you are doing messaging, it is a totally political environment but you have hard-to-reach

populations. you have non-english-speaking, farm areas. the obstacles are similar in a different political context. what are you seeing and what happens when it starts in october? >> there will be a huge investment in research and enrollment in california. there are very big investments that will be made by covered california, california's state- based exchange, to do outreach targeting the population that is expected to be subsidy eligible. there is also a very large campaign funded by a statewide healthcare foundation in california, targeting primarily people who are already or anticipated to be medi-cal eligible. medi-cal being california's medicaid program. those need to be well targeted

and focused. there's going to be a huge outpouring of money. the question will be, how effective is it at targeting people who are eligible and how receptive our people to messages presented to them? certainly, a great deal of thought and energy is being put into these very questions, targeting ethnic populations, dispersing geographically and where the highest pockets of uninsured are. partnering through state university systems that have natural affinities to younger people and their families. the question will be when people receive that message, what do they do? do they go to another source to learn more? when they get there, do they find an attractive set of options, prices that are affordable, and with conditions that are understandable?

i think that is a huge question about how people navigate that and engage with that. >> to the extent that you see what is going on in kansas october 1. >> i realize the metric is, can we add folks who are not insured right now. the future and success of the aca will be dependent on the impact that folks already have coverage. i look at the cost and access issue. proponents have said we can do this major expansion and you won't lose your coverage, your choices. your cost will be the same and may even decline. folks who have argued against it said, you're not going to have your choices and your coverage will go up dramatically. if costs go up dramatically for

people who currently have coverage, the political dynamics are such that it will be very difficult for the law to remain the law in the long term. on the other hand, if the proponents are correct and costs are the same and people can go to the same doctor they have always gone to, i don't think it matters how long it takes to enroll new people. if a law is in place long enough, eventually the medicaid expansion will continue. eventually folks will get enrolled. people aren't going to say, we need to get rid of it because we only signed up 2 million people. on the other hand, if people can't go to the doctor they want to go to, they don't care if we eat the 7 million number. >> 7 million previously uninsured is significant. another important number the administration talked about is that the vast majority of americans who have coverage through a larger employer, who have medicaid already or

medicare, the president said you're not affected by this at all. 7 million may seem like a lot, but if you look at people who have individual coverage now plus people who have coverage through small businesses, it's a much larger number than 7 million. those individuals are going to be significantly affected by the law. the choices they have now will be replaced by choices in the individual exchanges. >> 7 million, is that 7 million who are currently uninsured or 7 million who have -- is that 7 million going to exchanges who might be going to the individual market now? >> it was a broad definition. we expect to have 7 million people sign up. the governor's point is correct. where we are heading in this discussion 12 months from now, the unintended consequences and

impact on price which will occur september, october of 2012 just before election time, that does have significant political drag. i'm sorry, 2014. [laughter] people come see me off-line all the time who work in the insurance industry. they talk about the same things mark mentioned, the cost to the individual who has something now, their choice and price point may be significantly different a year from now. >> i would like to take us back to the focus on october 1 and january 1 and the number of 7 million. while the news may want to pick it up, i think the exchange is important for leaders to message but that is not the critical

date. october 1 is one things open. it is likely the numbers will not be met right away. look back at when the check program went into effect in 1997 and it took significantly longer for enrollment to happen than originally planned. i think that's almost more analogous than medicare part d because it was folks who did not have insurance as opposed to the medicare population. i'm not saying we can't learn a lot from the medicare implementation. in the intervening years, there has been an awful lot learned about how best to reach the kinds of people they're trying to reach. we've had a whole social media revolution, we have had a lot of research in the last couple of years that states have done to understand how to reach the

target population. i'm excited about what bringing these techniques to our reach enrollment may have. i want to emphasize that the state leaders we talk with on a regular basis understand that this is not a sprint. it feels like one. it's really a marathon, and it is the longer-term improvement of the healthcare system, getting more people quality coverage and more affordable coverage that is the promise on the upside of these reforms. >> when you look at the states you always knew the states would be different. this was not designed to be states areentical.

going to have a number of choices, who governs that, how much competition, you know, the standards for letting plans and, whether it would be a little more you talk, a little more massachusetts. you never thought it would be -- it would be more you talk, more --you never thought it would be uniformed. how uneven do you think the results are going to be? six months, a year from now, how different is it going to look? >> i think it is unlikely in this vast country to be one model that works perfectly. there could be multiple ways that an exchange is governed, ways it reaches its consumers, ways that it actually goes into version 2.0. some of the states are looking ahead to really impact the

quality of their delivery system with choices they make. i think there could be positive or negative outcomes for patients with different models. what is important is that we learn the lessons of what is working and does not work and spread them quickly so that those who come behind can adopt some of those practices. >> i want to give governor parkinson a couple of minutes. the political focus and the fighting and the money is focused on enrollment and coverage. but there is the other 900 pages of the law depending on which edition you are looking at, the number of pages that affects how healthcare is delivered. i want you to talk a little bit about that overlooked part of it.

a few states that would not happen without the law or would not be as advanced. >> it's a very under-discussed topic. we tend to think of the aca as an expansion issue. when i talk to my old boss, they will argue vehemently that this is also getting at cost and quality issues. i'm fortunate to have the position now where i run a trade association for nursing homes, and the holy grail of payment for providers has been, what do we do to reduce costs, keep quality the same or improve it? there are parts of the aca that get to that. dual demonstration projects across the country are spreading. we're trying to take care of folks that are eligible for medicare and medicaid at the same time and figure out by

coordinating that benefit, we can reduce cost and keep quality at the same level. accountable care organizations are popping up across the country to coordinate benefits and keep costs the same or lower while increasing quality. a lot of these things are not being discussed as much as the expansion topic. but in the long run, they may have a very large impact in moving along that whole movement of higher quality and lower cost. >> is there one specific program in one specific state that you >> in my current position, i tend to get more worried than excited. we have these dual demonstration projects that combine the medicare and medicaid benefit. in a very big way in california, that will roll out next spring. we have the accountable care organizations that keep providers together with hospitals to try to coordinate that postacute care. it is a threat and opportunity.

if we can figure out how to do this right, it can be a terrific thing for providers and beneficiaries. but we could also make some major mistakes and have very poor results. we are more focused on that part of the aca than expansion. >> is the medicaid expansion or lack thereof going to create more unevenness in this world? >> not really. it doesn't affect long-term care providers as much as it would so inospitals or doctors. our niche, no, but in the broader spectrum, absolutely. you talk to a hospital exec and a state not doing medicaid expansion, they have a different outlook. >> we have a twitter question. the question is, someone mentioned campaign style education. how has it helped? you might want to say, how has

it hurt? california first. how is this concept of a campaign playing out? >> i think that was ann's comment. the campaign in california has not launched yet. it is extremely important to watch how it works. to give people a sense of scope, the california exchange will be $100 million in the public affairs campaign over the next couple of years. that is a huge amount of money even in a state the size of california. it compares the $50 million that kaiser permanente invested in again, the program. targeting, the outreach to populations that are well- informed will be huge. will it work? we will see when it is on the ground.

>> this campaign and public education is also campaign with i thinkical connotation. that is part of what this question is getting at. enroll america is people closely associated with the white house. a. is unlike mm in 2005, there were some democrats who really did not like it or wanted to change it. they would come here and say, i want to repeal it, modify it. we heard it every day. they would go home and have more of a proactive outreach. i don't know of any republicans that maybe some i'm not aware of any that are proactively -- going out to a health fair in saying, i'm going to help you sign up.i don't know of any.

>> can i address that? >> sure. >> there would be no mechanism by which you would know how to do that. the information coming out of the administration has been so sparse. i don't attend the democratic caucus. but they had a thing about it this week, this will be your friend down the road. but there is very little information is coming out of the administration. there were not governors down at the white house when this was crafted. the governors you will depend on for this thing to work a kind of cut out of the program. where was the governor of indiana, who delivered care in his healthy indiana plan for

state employees and cut costs by 11% over two years? it was with a health savings account model. he found out something magic happens when people spend money for their own health care. there were a lot of opportunities missed. it's not my position to advise the administration.i'm sure they would not take it anyway. those opportunities are continuing to be missed. >> a couple points about campaign. california is a good example of doing a large-scale, public outreach campaign.i think 100 million. that is a fraction of the amount of money and resources. there is a different strategy here that is much more modern campaign style, micro-targeting. that is not what happened for technological and other reasons in 2005, 2006 with medicare. i don't think they could have media,at.the social internet technology did not exist then. i would say that is a two edged sword. it is a way of reaching people

faster, but there is a lot of information that the administration cannot control that will also spread that rapidly as these outreach and other activities occur -- >> if you are relying on twitter for your enrollment information -- >> there would be issues, yes. our outreach and education infrastructure was led by a mixture of people, some who supported the law and some who did not. it was focused from when we set it off a year before on information that is reliable so people can make an informed choice. ask them over and over again, what is it that you are seeing, your family members, what do they want to know? it focused on that. it was not a campaign strategy style of identifying, who is likely to benefit or potentially

be a target for this program, and how can we micro-target them? there is a next step to this. it's not the same thing as just getting somebody out to vote. it's one thing to get them to engage and look at the information, it is a second thing to help them make an informed, honest, fact-based decision about, what does this mean for me and is it a good idea for me to sign up? that's not a typical campaign decision. it's a thoughtful decision. this will be much more challenging than deciding what to buy on amazon, which hotel to book. this is like deciding a mortgage thatour house.something has that big financial consequences and depends on your current circumstances. that's not a typical campaign strategy focus, that is an education information tool focus that needs to accompany -- >> and that is happening in the states that are implementing their own state-based exchanges and in the partnership states

that are doing consumer assistance. and at the federal level that are developing the website and consumer assistance for the federally facilitated marketplace. while there is campaign style trying to reach folks going on, i don't think in my experience with the people i'm talking to in the states, there is nobody that thinks that is enough without having this other important education that needs to happen. it's not easy to figure out how to tell people to understand their choices. everyone in this room and out there knows that explaining insurance is a lot different than explaining those features of the newest smartphone. there's a lot of work going into trying to make that simple. none of us here knows if that is butng to work well or not. there is a lot of effort going into it. >> do we have audience questions?

stand up, signal, and we will get you a mic. please introduce yourself and make it a question. >> my name is kevin. i'm asking about the taft- hartley self-insured plans. do they have to be covered by insurance with the raising of the lifetime and it, the limit, the lifetime cap?thanks. >> to want to take -- i did not fully understand. >> they do under the law have to comply with all the requirements that insurance plans have to comply with. >> lifetime cap, that's what you're asking about? the answer is yes. >> starting 2014, there have been questions about whether taft-hartley plans can qualify for subsidies. i think the answer to that is

no. this will be one of many areas where there will continue to be questions. i believe under current law it >> othere to comply. questions? no one else in the room. on twitter, the challenges of the aca, that's what we been talking about the entire time. i guess i have a selfish question in terms of august.how hot is it going to get? i should tell you that i am so well organized and prepared that i sent my husband out to buy the school supplies yesterday. i will get the right ones next week. [laughter] >> i'm sure he appreciates your confidence. >> it's a training process. 17 years. we are getting there. [laughter] >> i will never forget 2009.

it attracted two dozen people in my sleepy town hall of denton, texas. we had to move it out to the parking lot, at 110 degrees. there was simply not enough room for everybody to show up. i did not want the picture on the 6:00 news to be people pounding on the door and saying, listen to us. we went out to the parking lot and talked for hours. i don't know that it will be that level. in texas, people are going to be mad about the irs and immigration and any number of things. this will probably be fairly low down on the list. there's no question there'll be some discussion about this. we will likely absorb criticism for not embracing the affordable but it has been well advertised, and i've been a skeptic from one -- from day

one. and then there is a whole issue of funding. you have the end of the fiscal year coming up, september 30. exchanges start the next day. there is a nexus that will be pretty important. and we have incredible budget battles sometime before the end of the year with the federal debt limit and how that will that is governor perry's concern. do i really trust the federal government to do everything they say they will do with their checkbook? absolutely not. what if i start this expansion and there is no partner with me at the end of next year and i'm standing on my own? the funding questions will be some of the more heated ones. you're in the house, you control the purse strings, why don't you just shut this down? that will likely be asked that. >> really quick question, is sgr >> aening this year or not?

passed in the subcommittee on a post -- a voice vote next -- last week. it will pass the full committee next wednesday and at some point we will be wrapped up with the bigger budget battles by the end of the year. the sgr was an inclusive fromss.we got input writers and patients for a year and a half or two years. republicans and democrats worked well into the night working on this. the important thing was to get policy right.we will worry about the pay fors at a different day. the good news was we were able to coalesce around policy. when i started, the sgr was insoluble.no one could fix it. we're going to fix it. >> question for california, from twitter. when you do this outreach campaign, what is the hardest thing for people to grasp? i'm paraphrasing.

>> the complexity of the laws, opportunity and obligation is what makes it -- everyone is evaluating it through their own lens.will i be better off or not better off when this goes forward? the issue you might hope would mobilize people is, to what extent are we in this together and do i have an obligation to participate, not because of my short-term benefit but broader reasons? >> as we campaign, education -- when you hear people talking about it, you know it does not connect with the audience? >> i would like to come back to something that has not come up, which is the importance of collaboration and communication among the different agencies in a state, between the feds and

the state, and between the states and private sector. that's happening successfully in places, but it could be better and is going to need to work well going forward. >> back to the point about individuals signing up, the issue of we are all in this together is maybe one reason to get insurance. it does take you back up from the level of, what does this mean for me personally, to the level of, which are we as a society doing about health care? they challenged there is there are very different views. most americans want to be in this together in terms of making sure everyone gets the coverage they need. that does not mean that all americans are going to afford this version of doing it. making it a philosophical issue will be a challenge in this environment. there are a number of people out there who would say, i would like to get coverage but i don't have that much income.

this looks expensive. or, i had a policy before that was cheaper for whatever reason. i'm young and healthy, and so forth. they may end up not deciding. the big question is, how much the individual mandate fee will play out in all of this. i can see a lot of people deciding that they're going to wait through this first period to see what happens. >> some people have told me that they think that premiums may be high the first year because insurers are conservative. they don't want to lose all their money. they may be pricing a little higher the first year. some are holding back to see what happens. judging at the first year, not just enrollment the pricing,-- not just on enrollment but on

pricing, there may be a hard assessment. >> it's hard to say. the more you can convey certainty about the policy and how well it's going to work, the more competitive prices you're going to get. that worked very well in medicare part d and prices came down even further since then. for this program, some states have done pretty well with this. for many insurers, when they don't know how many people are signing up, this is an educated guess this year, and it may look different from state to state in 2015 based on experiences that differ from state to state in 2014. >> and that could be up or down. >> right. >> it's like an initial stock it is priced at something and then it goes in one direction or another. >> transparency has been a problem. the withholding of rules such as the essential health benefit until after election day -- people remember that.they will be a little bit reluctant about this. >> other audience questions?we

have another minute or two. yes. the mic -- >> we are going to have interesting time at the end of the year. there is the talk of the sgr fix being permanent. we will have the interesting confluence of the debt ceiling limit being hit, sgr coming into play, and now discussion that the whole affordable care act may become part of the debt ceiling debate. we are gearing up for a fiscal cliff type scenario like we had last year. not quite as big, but with all the drama of whether the government will be shut down in that debate occurring in november. >> the timing of it is -- originally i thought it would be a september debate. the actual timeline is after enrollment begins. we are going to a long, hot december. the timing of it may interact

therethe aca differently. was a question here. introduce yourself, please. >> maria, with business roundtable.how about funding through the exchanges? will states be seeking more funding than they receive from the federal government? how will that work?what are you hearing? >> states are eligible to apply for establishment grants through august of 2014. that is particularly for states that may elect to run state- based exchanges or take on certain functions. after that year, they have to be fully self-sustaining. they all have different models they are working on for self sustainability, including fees on the plan that are part of the marketplace. some on the broader marketplace. they are looking at other creative sources, such as

advertising and sponsorship. they need to provide value, to their customers, and they need to be self-sustaining. the fed will not be funding the exchange. >> for the federal fallback states, it looks like it will be >> that ife insurers. the current plan. it's not going to come from the treasury after that. >> time to wrap up our conversation. thank you all for joining us.i thought it was a really lively, interesting time. thank you to cvs caremark for your partnership in making this event possible. thank you for attending this morning and thank you to all of you watching the live stream. have a great day. we will see you next time we gather for a politico conversation. [applause] [captioning performed by the national captioning institute] [captions copyright national cable satellite corp. 2013]

>> on the next "washington journal," a look at the health spending bill. then a legal case against goldman sachs trader for restore for his role in the 2008 financial crisis -- crash. and historian greg brezinski will be on the program to talk about the 60th anniversary of the armistice that ended the korean war. "washington journal" begins at 7:00 eastern time on c-span. >> the treatment of hunger strikers at guantanamo compromises the core, ethical values of our medical profession. the ama has long endorsed the principle that every competent patient has the right to refuse medical intervention. the world medical association and the international red cross have determined that force- feeding through the use of her strains is not only an ethical

violation, but conference is article three of the geneva dimensions. my concern is less just sit inside the numbers that you might or might not feel you can safely push out. an unknown number -- number, but the a president has apparently said it is 46 -- that you can never try. do you honestly think that the people behind me and the people who are compelling this hearing demonstrate for thewwwwñ release of those prisoners just because they are not in the united states? to keepf a race mongeringwww the guantánamo bay facility open is hard to understand. oróóóóóóówwwwwwwl treatment, the detainees oppose no threat to our national securities feared the 86 men who have been cleared for transfer duringwwwççççççççç- transfer. findçççççççççççs

world lawful detainees as we have done in every conflict. >> this we cannot season, the senate judiciary subcommittee on human rights looks at the implications of closing big guantanamo bay prison today at 2:00 a.m. eastern. bookat 10:00 on c-span2's tv, live coverage of the roosevelt reading festival from the fdr presidential library and museum in hyde park, new york. americanon c-span3's history tv, president obama and defense secretary chuck hagel commemorates the 60th anniversary of the korean war armistice. that is also this morning at 10:00. >> the director of national intelligence, james clapper, spoke at this year's commencement at the national intelligence university. the niu is a federally chartered university. it's still ridding its 50th anniversary. before his remarks, general

clapper is introduced by defense intelligence agency director michael flynn. [applause] >> there is a lot of people out here that will receive bachelor's and master's degrees today, but i would want to re- emphasize what was just said, and i would say she has got a doctorate in the national anthem, and that was one of the most beautiful renditions of our national anthem. i would just like to give her another round of applause. [applause] i do not know where she is at. thanks very much to -- that is quite all right. they usually start out like that every time i talk. for everybody that has got kids or families, there is everybody on the stage and all of us has gone through these ceremonies.

do not worry about kids one bit. we appreciate them being here today. i wanted to say good morning to the graduates. i think what dr. ellison just said was right on the money about where you will be in the future. as you all reach a major milestone in your careers and in the history of niu, it is my honor to congratulate you. in the presence of your families and honored guests and our great staff and faculty that we have, that really makes this institution what it is, you are all graduates as has been already said of the national intelligence university's 50th anniversary class. that is an extraordinary feat for where we are today, and i would like on behalf of everybody here to give you a round of applause for achieving this milestone.[applause]

as dr. ellison's mentioned, the institution has grown in size and impact during the first 50 years, from humble origins at the defense intelligence school, housed in world war ii barracks on the naval station, to an accredited university that offers degrees and represents the entire community. this is a university that is expanding the literature of intelligence every day with publication of books and research from the national intelligence press. it is a university that engages leaders in common dialogue. it is a university that continues to produce the future leaders of our profession and our nation. this year we mark the occasion of our 50th anniversary by being recognized by the nation's most senior leadership for not only the high quality of the education offered, but for the

joint nature of that education. this past october, general dempsey named niu a joint professiona military education professional military education phase one accreditation program, the first to receive such approval since before september 11. completion of military education is important for some our military officers and necessary for future promotions and assignments into our joint force. this past february, as the impact was highlighting to director clapper, he took similar action by designating those that are attending the full-time master's program as joint duty and joint duty qualifying for civilians. this is a big deal. it is a tremendous opportunity for the workforce as they advance through their careers.

without that accreditation, without the joint duty assignment, you cannot make it into the senior executive service of our intelligence profession. that is a huge shift and another moniker for this university as it continues to some day have people sitting in the position of director clapper or the director of our fbi calling of each other as past classmates, trying to solve complex problems. these milestone achievements highlight the fact that this university is doing exactly what it should be doing, integrating intelligence for a more secure nation one student at a time, while graduating leaders who will lead within our armed forces, the intelligence community, and across government for many years to come. director clapper, i can assure you that this institution has both very deep roots and very

bright futures. niu is on its way to achieving your vision of becoming the center of academic life for the united states intelligence community. to the class of 2013, congratulations, and very well done for choosing what you will walk across the stage to receive today, and i would like to give them another round of applause. [applause] you should be proud of yourselves, you have tackled a challenging field of immense proportion and immense importance to our nation. quickly reviewing a list of the thesis topics you can tell how this class has covered almost every corner of the globe, from china, iran, north korea, the middle east, india, africa, philippines, latin america, to here in the united states covering some of the most vital issues that we wrestle with in the intelligence community every

day, issues such as terrorism, cyber threats, counterintelligence, space, drug trafficking, human trafficking, regional instability, and so many others. it is a complex world. as our nation will face daunting security challenges ahead, i have full confidence that you are ready to assume the mantels of leadership in your organizations. the common bonds you have formed throughout your joint study here are crucial. remember each of you is a force multiplier for integration and collaboration, which are the keys to avoiding strategic surprise and providing our national leaders that vital decision advantage and confidence they require. i challenge each of you to carry forward niu's culture of integration as you moved your next station. i challenge you to mold the intelligence community and to the organization that in each to be for our nation is the future. it is fitting that on this event of the 50th anniversary of this fine institution we're joined by

some of the most distinguished members of our profession, including director clapper and our former international security assistance force and u.s. forces in afghanistan commander general john allen, a graduate of the class of 1984, and i would like to give them both a round of applause. [applause] it is an honor to introduce our commencement speaker, the honorable james clapper, the fourth director of national intelligence. he has a long track record of support for intelligence education and is a special friend to this university, as has been highlighted. as both director of dia and the national spatial intelligence agency as well as the undersecretary of defense and now serving as the fourth director of national intelligence, there's no one

that has served our nation and continues to serve our nation during so many trying times that director clapper has done. from his first serving our nation as a united states marine, during his time as a young airman in vietnam, throughout all the difficult times our nation has faced over the past five decades of peace, war, and conflict, what many do not know is that in the mid- 1990's he served as an instructor teaching a course, entitled the future of the intelligence community, little knowing he would go on to shape this great institution. that is very true, amazing, little knowing that he would go on to shape this great institution that the community has become and to lead that tens of thousands of women and men who make up our tremendous workforce.

director clapper was awarded an honorary doctorate by niu in 1995, and it was through his leadership that this institution became the national university. on behalf of all the men and women in the united states intelligence community, all of you that are here, i would like to thank you, and i would like to present to you, to the audience here, as he gets up here and provides the commencement speech, ladies and gentlemen, director clapper.[applause] >> thank you very much. i could not help but be reminded when the screaming child that was escorted out, and i am mindful of the fact that the younger members of the audience are unimpressed with this whole

thing. [laughter] i recall a long time ago when i was the old air force security headquarters in texas, the time i was there every quarter we would run a big parade for retirements. and a bunch of lieutenants, one of whom was me, got together and said why don't we run this thing because we are closer to marching than these field grade officers. when the lieutenants took care of the parade over, i got to be the perpetual adjutant. i was having one of these parades and the point where the adjutant comes up to the commander and said, the parade is formed, and my daughter was sitting on my wife's lap, and she said, hi, daddy, at the top of her lungs, and the crowd broke up, and i am trying to stand here and act very military.

i will never forget that. thanks very much for that very kind, gracious introduction. usually when we speak together, we are testifying in front of congress. [laughter] that is quality bonding time. [laughter] ladies and gentlemen of the class of 2013, staff and faculty of the university, and let me mention also the particular hero of mine is general john allen, and at the risk of doing it, i ask for a round of applause for john.[applause] it is a pleasure to be here, and to have the family members here, even the ones that are not too

impressed. they do not often get to participate in something in what we do. i was privileged to address the classes of 1992 through 1995 when i had the honor of serving as director, and the class of 2007 i was the undersecretary of defense for intelligence, but this is my first time as dni. this is the best part of my job, getting a chance to congratulate members of the intelligence community for their competence. add on to that i get to welcome you back into your jobs after your vacation here. we have been waiting for you, to put your new superior knowledge to use for a safer america and a more secure world. this month, as was indicated, marks the 50th anniversary of my commissioning as an air force second lieutenant, almost coincidental with the first class of the brand-new defense

class graduating. both our titles have changed over the years. the dis became the defense intelligence college, where i taught as an adjunct professor, and the national defense intelligence college, and now it is most appropriate the national intelligence university. i am referred to as director, at least in polite company, and had been called general, colonel, etc., and back when the marine corps basic training, i was called several things there which i cannot repeat in mixed company.[applause] as we developed over the last 50 years, i like to think we have gotten wiser with those name changes, at least niu has. i want to take a moment to commend president ellison and the current staff and faculty for all they have done, and

particularly for president ellison's passion and leadership. so i ask for a round of applause for david ellison. [applause] niu is becoming worldwide respected institution with a dynamic and visionary plan. it is not all pie in the sky. you are integrating intelligence, which is a big thing to me, one student at a time, and that is what the i.c. needs from you as graduates. i salute you for that. as they say -- this is an exciting time to be in the intelligence community. most of us would prefer a more boring time, i know i would, but that is not an option. we live with threats from terrorism, nuclear proliferation, cyber, and competition over natural resources.

i would go so far to say that as a nation we face more diverse threats now than at any time during my 50-year career in intelligence. shrinking budgets have added to the danger, because it is not realistic to think we can ever do more with less. we are going to do less with less. we will just have to identify and manage risks more closely than before. there have been challenges throughout my career. in my first combat experience was in vietnam, 1965 and 1966, and i will go be going back there next month for the first time since i left in 1966. i'm looking forward to that. intelligence automation in the day was map, a grease pencil, and two corporals. even when moving quickly ahead

to desert shield and desert storm, we have come light-years since then, even with all the improvements we made then, particularly in imagery, and 9/11 changed everything. the prevention act was an outgrowth of 9/11 called for greater integration. i felt that was a natural thing for me to take on in this job -- the sum is greater than the parts -- to produce better products for our policy, our decision-makers, whether sitting in a foxhole or the white house. i think that calls for integration, horizontally across the so-called -- and vertically now, the added responsibility we have for attending to state and local and tribal partners. a couple words on budgets. we had a decade of growth after 9/11 in the intelligence

community budget. every year we got more money. now we are in a different mode. we have been through this before. this happened in my time as director and hopefully we can profit from that experience and apply those lessons learned, and as we constrict ourselves, we will do it smarter than we did in the 1990's. we have still important priorities. i have about five, but i will mention the most important one, which are represented here today, and that is our people, which is our most valuable asset. it is the people who will have the ingenuity, the drive, and the innovation to figure out ways to get around and obviate, mitigate these reductions. other challenges, i will not go into detail, but the recent nsa leaks drama crystallizes some

conflicting demands on us as intel professionals, a need to safeguard our citizens lives, a duty to share intelligence information, our responsibility to protect sensitive sources and methods, and an imperative to protect american civil liberties and privacy. we must synchronize and meld all these competing forces simultaneously. and we should preferably do it out of the limelight. we serve our nation, and for us that is satisfaction enough. now we are at the part of any graduation speech that always makes me cringe, which is giving advice for the future. this will be really short. [laughter] i realize once you achieve geezerdom, as i have, people expect some pearls of wisdom. i do not know if this qualifies,

but here are five rules of thumb i try to subscribe to. now that you have made all these great connections with classmates from every part of the i.c. and government, it is time to think beyond your organization. you need to build those strong partnerships, as the president alluded to the phone call between the phone call of the director of the cia and fbi, and that works, so i need you, the most recently educated, to understand the concept of intelligence integration. do not confuse integration across agencies with making every agency and organization into the same bland oatmeal. integrate across organizational lines to take advantage of the diversity as represented in this class and the strength of different organizations with their unique capabilities. there are things about stovepipes, cultures, and tradecraft that are worth preserving.

that is a term used pejoratively, but also an important capability for us. do not gloss over problems. meet them early and head on. bad news does not good get better with age, but the key part of leadership is recognizing when a mistake is made you need to correct the situation as quickly and thoroughly as possible. try to stay calm under pressure. it is right there on the cover of "the hitchhiker's guide to the galaxy." do not panic. be kind. it goes a long way, much further than you realize. do not neglect your work-life balance. family and friends help you get there. you want them to be there for the rest of your career when you retire. take care of yourself physically and mentally. a strong body and a clear head are central to clear decision- making. 66 years ago today, president truman signed the national security act which created dod, department of the air force, cia, and joint chiefs of staff.

he signed this directive aboard the douglas skymaster c-54, which in the day, instead of being air force one, was called sacred cow. as an expression, a sacred cow is something to do that so much reverence it is immune from criticism and that everyone is reluctant to change. that is the way it has always been. we cannot think that way in our business. with one stroke of a pen, truman changed our u.s. national security and how it was organized. there would be many more changes in next half-century since he signed that document in name and organization and otherwise. my hope is both the national intelligence university and each of you will continue to improve with age, just like fine wine. another great president, theodore roosevelt, said old age

is like everything else -- to make a success of it you have to start young. you might notice i think about these kinds of philosophical musings. best of luck to all of you, and many, many congratulations. it is a proud day for you and your families, and i am proud to serve with you as we work together to keep this country and our allies safe. god bless all of you and god bless america. thank you very much.[applause] >> today unceasing, "washington youral" is next live with phone calls. then the future of the guantánamo bay detention center, followed by a u.s. house debate on the national security agency's electronic surveillance program. in about 45 minutes, we will discuss what is in the defense spending bill that the house passed this week with military time congressional editor rick maze. legal case against a goldman sachs trader for his role in the financial collapse and we will talk to bloomberg ris. reporter bob van vo

greg brezinski will be on the program to talk about the armistice that ended the korean war. ♪ host: next week the house of expected to take up a bill on highway programs. the house of representatives reportedly is not expecting to produce a bill that will address food stamps before the start of the the august recess. there are discussions going on capitol hill about what to do about the program. some of the considerations are to make some cuts to the program proposal by ae -- wouldative has allow states to test work requirements for those receiving works --